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SP – 11/9/2004 NIST MEP
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean & & CleanCleanOverviewOverview
Michigan Business Pollution Prevention PartnershipMichigan Business Pollution Prevention Partnership
October 12, 2004October 12, 2004
Bill Stough, MMTCBill Stough, MMTC--West GSN AssessorWest GSN AssessorSustainable Research Group, LLCSustainable Research Group, LLC
SP – 11/9/2004 NIST MEP 2
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
ObjectivesObjectives
•• Need for Lean & CleanNeed for Lean & Clean•• What is Lean ManufacturingWhat is Lean Manufacturing•• Processing WastesProcessing Wastes•• What is Clean ManufacturingWhat is Clean Manufacturing•• Materials ProductivityMaterials Productivity•• What is Lean & CleanWhat is Lean & Clean•• Outline of WorkshopOutline of Workshop
SP – 11/9/2004 NIST MEP 3
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean && CleanClean ProductionProduction
LeanLean && CleanClean ProductionProduction
LeanLean ManufacturingManufacturing Materials ProductivityMaterials Productivity
SP – 11/9/2004 NIST MEP 4
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Need for Need for LeanLean & & CleanClean
Dual pressures on industry today:Dual pressures on industry today:
1.1. Global competition is leading to the loss of manufacturing Global competition is leading to the loss of manufacturing jobs in the US. Companies must find and eliminate waste in jobs in the US. Companies must find and eliminate waste in order to reduce cost and be more competitive.order to reduce cost and be more competitive.
2.2. Greater pressure on companies to minimize their impact on Greater pressure on companies to minimize their impact on the environment for the benefit of the community and their the environment for the benefit of the community and their workforce (e.g. ISO 14001)workforce (e.g. ISO 14001)
SP – 11/9/2004 NIST MEP 5
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean is...is...
•• A A way of thinkingway of thinking and taking a systems approach and taking a systems approach to training & implementationto training & implementation
•• A A cultureculture of continuous improvementof continuous improvement•• A A philosophyphilosophy of eliminating nonof eliminating non--value added value added
activities (i.e. waste)activities (i.e. waste)•• An An approachapproach of empowering peopleof empowering people
SP – 11/9/2004 NIST MEP 6
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean Manufacturing...Manufacturing...
•• Focuses on Focuses on timetime, (, (TIMETIME = = $$$$))•• Reduces all nonReduces all non--value added activities:value added activities:
-- Shortens processing timeShortens processing time-- Gets products to customers quickerGets products to customers quicker-- Improves productivityImproves productivity-- Improves qualityImproves quality-- Lowers cost, andLowers cost, and-- Increases customer satisfactionIncreases customer satisfaction
SP – 11/9/2004 NIST MEP 7
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean Enterprise is:Enterprise is:
““A systematic approach to identifying and eliminating A systematic approach to identifying and eliminating
waste (nonwaste (non--valuevalue--added activities) through added activities) through
continuous improvement by flowing the product at continuous improvement by flowing the product at
the pull of the customer in pursuit of perfection.”the pull of the customer in pursuit of perfection.”
SP – 11/9/2004 NIST MEP 8
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean = Eliminating the Wastes= Eliminating the WastesValue Added
Typically > 95% of all lead time is non-value added
• Defects
• Overproduction
• Waiting
• Non-utilized Talent
• Transportation
• Inventory
• Motion
• Extra Processing
Non-Value Added
“The Eight Deadly Wastes”
SP – 11/9/2004 NIST MEP 9
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of Making DEFECTSWaste of Making DEFECTS
•• Money and time wasted to find mistakes and Money and time wasted to find mistakes and fix or replace productfix or replace product
Causes of DefectsCauses of Defects-- Lack of process controlsLack of process controls-- Poor quality of incoming materialsPoor quality of incoming materials-- Lack of planned maintenanceLack of planned maintenance-- Inadequate operator trainingInadequate operator training-- Poor work instructionsPoor work instructions
SP – 11/9/2004 NIST MEP 10
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of OVERPRODUCTIONWaste of OVERPRODUCTION
•• Making products Making products FasterFaster than needed!than needed!•• Making products Making products SoonerSooner than needed!than needed!•• Making Making MoreMore product than needed!product than needed!
inventory
defects
motion
transportation
SP – 11/9/2004 NIST MEP 11
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of WAITINGWaste of WAITING
•• Time lost when people, material or machines are waiting….Time lost when people, material or machines are waiting….
Causes of Waiting WasteCauses of Waiting Waste-- Unbalanced workloadUnbalanced workload-- Equipment breakdownsEquipment breakdowns-- Batch processingBatch processing-- Long setLong set--up timesup times-- Poor material handling practicesPoor material handling practices-- Scheduling problemsScheduling problems-- Waiting for toolsWaiting for tools
SP – 11/9/2004 NIST MEP 12
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of NONWaste of NON--UTILIZED TALENTUTILIZED TALENT•• The wasted potential for improvement that results when the The wasted potential for improvement that results when the
people doing the work are not consulted for their ideas on people doing the work are not consulted for their ideas on improving the methods of workimproving the methods of work
Causes of unused talent wasteCauses of unused talent waste-- Old guard thinking, politics, business cultureOld guard thinking, politics, business culture-- Low or no investment in trainingLow or no investment in training-- High turn overHigh turn over
SP – 11/9/2004 NIST MEP 13
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of TRANSPORTATIONWaste of TRANSPORTATION
•• Transporting parts and materials around the plantTransporting parts and materials around the plantCauses of Transportation WasteCauses of Transportation Waste-- Poor plant layoutPoor plant layout-- Large batch sizesLarge batch sizes-- Long lead timesLong lead times-- Large storage areasLarge storage areas
SP – 11/9/2004 NIST MEP 14
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
TransportationTransportation
Rec Ship
Shear Screw Machine
Q CStamp
AssemblyBrake Mill Lathe
Weld FinishGrind Parts
Stock
Drill
Q C
Raw Stock
SP – 11/9/2004 NIST MEP 15
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of INVENTORY Waste of INVENTORY •• Any material in excess of the amount required for productionAny material in excess of the amount required for production
Causes of excess InventoryCauses of excess Inventory-- Inventory held “JustInventory held “Just--InIn--Case” problems arise Case” problems arise -- NonNon--level schedulinglevel scheduling-- Unbalanced workloadUnbalanced workload-- Unreliable shipments by suppliersUnreliable shipments by suppliers-- Poor market forecastPoor market forecast
SP – 11/9/2004 NIST MEP 16
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Inventory: Raw MaterialInventory: Raw Material
SP – 11/9/2004 NIST MEP 17
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Inventory: Work In Process (WIP)Inventory: Work In Process (WIP)
SP – 11/9/2004 NIST MEP 18
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Inventory: Finished GoodsInventory: Finished Goods
SP – 11/9/2004 NIST MEP 19
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of MOTIONWaste of MOTION
•• Any movement of people or machines that does Any movement of people or machines that does not add value to the productnot add value to the product
Causes of Motion WasteCauses of Motion Waste-- Poor ergonomicsPoor ergonomics-- Poor plant or workstation layoutPoor plant or workstation layout-- Poor workplace organization and housekeepingPoor workplace organization and housekeeping-- Sorting/looking for itemsSorting/looking for items
SP – 11/9/2004 NIST MEP 20
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Waste of EXTRA PROCESSINGWaste of EXTRA PROCESSING
•• Doing more than the minimum required to transform Doing more than the minimum required to transform material into an acceptable productmaterial into an acceptable product
Causes of nonCauses of non--value added processesvalue added processes-- Over processing to accommodate perceived customer needsOver processing to accommodate perceived customer needs-- Poor process design (e.g. temporary packaging)Poor process design (e.g. temporary packaging)-- Unnecessary paperwork requirementsUnnecessary paperwork requirements-- Redundant approvals/inspections requiredRedundant approvals/inspections required-- Unnecessary reports producedUnnecessary reports produced
SP – 11/9/2004 NIST MEP 21
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean Building BlocksBuilding Blocks
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S SystemVisual Plant Layout
POUS
Cellular/FlowPull/Kanban TPM
Continuous Improvement
ValueStreamMappingClean Mfg.
SP – 11/9/2004 NIST MEP 22
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Seeks to continuously improve products and processes to increase companies’ competitiveness and lessen their impact on the environment.
Optimizes use and selection of resources and technologies to aim for elimination of waste. The term for this is Materials Productivity.
Clean Manufacturing
SP – 11/9/2004 NIST MEP 23
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Materials ProductivityMaterials Productivity-- What is it?What is it?
•• A fundamental reA fundamental re--examination of examination of howhow, , whenwhen and and whywhy materials are usedmaterials are used
•• An approach to achieving An approach to achieving manufacturing manufacturing andandenvironmental environmental excellenceexcellence simultaneouslysimultaneously
•• A powerful approach of going “Beyond A powerful approach of going “Beyond Compliance” to lower costsCompliance” to lower costs
SP – 11/9/2004 NIST MEP 24
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Materials Productivity because...Materials Productivity because...
•• Materials that are bought but not sold cost you twice, Materials that are bought but not sold cost you twice, once when you buy them, again when you dispose of once when you buy them, again when you dispose of themthem
•• Materials that are bought but not sold increase costs Materials that are bought but not sold increase costs and decrease profitsand decrease profits
•• The more material and processing invested into a The more material and processing invested into a part, the greater the cost of throwing it awaypart, the greater the cost of throwing it away
SP – 11/9/2004 NIST MEP 25
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
CleanClean Manufacturing Building BlocksManufacturing Building Blocks
Energy Audits
Standardized Work Materials Accounting Teams
Quality at Source
5S SystemMaterial Substitution Process Mapping
Ergonomics
Full Cost AccountingHazard Analysis TPM
Continuous Improvement
ValueStreamMappingOrganizational Development and Culture Change
SP – 11/9/2004 NIST MEP 26
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
CleanClean Manufacturing Seeks to Manufacturing Seeks to Eliminate NonEliminate Non--Value Added AspectsValue Added Aspects
1.1. Underutilized resourcesUnderutilized resources2.2. Inefficient energy useInefficient energy use3.3. Wasteful byproducts and scrapWasteful byproducts and scrap4.4. Excessive regulatory requirementsExcessive regulatory requirements5.5. Workplace health and safety issuesWorkplace health and safety issues6.6. Liability and risks faced by ownersLiability and risks faced by owners
SP – 11/9/2004 NIST MEP 27
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Current State
Fresh Solvent10 lbs.
Gun Washer
Waste Solvent10 lbs.
Future State
Fresh Solvent 1 lb. Each pass after initial charge of
10 lbs.
Gun Washer
Still
9lbs. Solvent recycles each pass
Example: Resource EfficiencyExample: Resource Efficiency
SP – 11/9/2004 NIST MEP 28
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Disposable Packaging Returnable Totes
Example: Byproduct EliminationExample: Byproduct Elimination
SP – 11/9/2004 NIST MEP 29
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
• Reduce their dependency on nonrenewable resources• Eliminate wasted energy, raw materials, and labor• Simplify their processes with less administrative burden• Continually improve their performance• Develop employees who constantly question the status quo• Improve community relations
All these achievements will contribute to a company’spursuit of high performance and unparalleled competitiveness.
Companies Committed to Companies Committed to Clean Clean Manufacturing Can Expect to:Manufacturing Can Expect to:
SP – 11/9/2004 NIST MEP 30
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean && CleanClean ProductionProduction
•• CombinesCombines Materials ProductivityMaterials Productivity withwith Lean Lean ManufacturingManufacturing
•• Involves the Involves the complete manufacturing modelcomplete manufacturing model
Inputs >>>Inputs >>> ProcessProcess >>> Outputs>>> Outputs
SP – 11/9/2004 NIST MEP 31
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Eliminating WastesEliminating Wastes-- ““LeanLean andand CleanClean” Mfg.” Mfg.““LeanLean” eliminates...” eliminates...-- DDefectsefects
-- OOverproductionverproduction
-- WWaitingaiting
-- NNonon--utilized talentutilized talent
-- TTransportationransportation
-- IInventorynventory
-- MMotionotion
-- EExtra processing xtra processing
““CleanClean” adds...” adds...-- Full use of Raw Material Full use of Raw Material
-- Energy Efficiency Energy Efficiency
-- Eliminating Toxic MaterialEliminating Toxic Material-- Reducing Generation of WasteReducing Generation of Waste
-- Solid/Hazardous WastesSolid/Hazardous Wastes-- Packaging WastesPackaging Wastes-- Emissions to AirEmissions to Air-- Emissions to WaterEmissions to Water
-- Anticipating social needsAnticipating social needs
“Lean” focuses on operations to maximize efficiency (flow)“Clean” focuses on resources to reduce waste and cost
SP – 11/9/2004 NIST MEP 32
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Results of “Lean + Clean” ApproachResults of “Lean + Clean” Approach
Input
ThroughputOutput
↑ Value-Added/Labor↑ Labor Skills↓ Raw Materials↓ Natural Resources↓ Toxicity
↑ Resource Productivity↑ Work-In-Progress Quality↑ Energy Efficiency↑ Regulatory Compliance↓ Work-In-Process Inventory↓ Scrap↓ Lead Time↓ Waste
Waste to AirCO2
Wasteto Water
↑ Profit↑ Quality↑ Delivery↓ Inventory↓ Waste↓ Packaging
Profit $$ProductSolid/HazardousWastePackaging
Raw MaterialEnergyWaterLabor
Financial Resources $
SP – 11/9/2004 NIST MEP 33
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean && CleanClean ProductionProduction
•• Efficient use of labor, time & capitalEfficient use of labor, time & capital•• Efficient use of energy & raw materialsEfficient use of energy & raw materials•• Maximize quantity of products from least number Maximize quantity of products from least number
of inputsof inputs•• Minimize wasteMinimize waste•• Creates a pathway for growth without an equal Creates a pathway for growth without an equal
rise in consumptionrise in consumption
Goal: SustainabilityGoal: Sustainability
SP – 11/9/2004 NIST MEP 34
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
LeanLean & & CleanClean ProductionProduction
• In essence, they become:-- Lean Lean (efficient)(efficient)-- Mean (competitive)Mean (competitive)-- Clean (low waste, good workplace)Clean (low waste, good workplace)-- Green (environmentally responsible)Green (environmentally responsible)
SP – 11/9/2004 NIST MEP 35
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Workshop ProcessWorkshop Process
•• Define the problemDefine the problem –– use mapping and business metrics to use mapping and business metrics to evaluate current productivityevaluate current productivity
•• Measure process variablesMeasure process variables –– collect data and facts to assist in collect data and facts to assist in decisiondecision--making.making.
•• Analyze available informationAnalyze available information –– seek out root causes of wasteseek out root causes of waste•• Improve processesImprove processes –– implement plan of action to eliminate waste implement plan of action to eliminate waste
and improve productivity.and improve productivity.•• Control ActivitiesControl Activities –– identify methods & controls to put in place to identify methods & controls to put in place to
eliminate variability and backsliding eliminate variability and backsliding •• Improve ContinuouslyImprove Continuously –– encourage constant improvement and encourage constant improvement and
longlong--term commitment.term commitment.
SP – 11/9/2004 NIST MEP 36
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Workshop FormatWorkshop Format
•• Lean & Clean OverviewLean & Clean Overview•• Value Stream Mapping TrainingValue Stream Mapping Training•• Mapping your Value Stream (Current & Future)Mapping your Value Stream (Current & Future)•• Brainstorm ImprovementsBrainstorm Improvements•• Determine Costs and Benefits of IdeasDetermine Costs and Benefits of Ideas•• Present Recommendations to ManagementPresent Recommendations to Management
SP – 11/9/2004 NIST MEP 37
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Map the Value Stream to Target ImprovementsMap the Value Stream to Target Improvements
II I I
I
2 days 2 days 1 days 2 days
1 days
Stamp Heat Treat Quench Temper Grind
C/T = 30 sec
C/O = 1 hr
Uptime = 90%
C/T = 15 sec
C/O = 5 min
Uptime = 85%
C/T = 5 sec
C/O = 5 min
Uptime = 90%
C/T = 20 sec
C/O = 9 min
Uptime = 95%
C/T = 45 sec
C/O = 20 min
Uptime = 80%
3 1 1 2 3
LT = 20 days
VA = 465 sec
I I I I
3 days 3 days 2 days 4 days
Polish Boiling Oil Wash Lacquer Assemble Package
C/T = 30 sec
C/O = 15 min
Uptime = 100%
C/T = 4 min
C/O = 6 min
Uptime = 100%
C/T = 20 sec
C/O = 2 hr
Uptime = 80%
C/T = 1 min
C/O = 12 min
Uptime = 90%
3312 1
C/T = 1 min
C/O = 12 min
Uptime = 90%
LeanClean
Clean
SP – 11/9/2004 NIST MEP 38
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Develop List of Action ItemsDevelop List of Action Items
•• Brainstorm improvement ideas for the model lineBrainstorm improvement ideas for the model line•• Determine reasonable cost estimates for ideasDetermine reasonable cost estimates for ideas•• Determine likely cost savingsDetermine likely cost savings•• Calculate pay back period or ROICalculate pay back period or ROI•• Select action items based on financial and Select action items based on financial and
environmental impactenvironmental impact
SP – 11/9/2004 NIST MEP 39
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Action Item ListAction Item List
•• Assign responsibility and target dateAssign responsibility and target date
80%80%1212--3131--0202RobertRobertSmithSmithTrial of alternative lacquerTrial of alternative lacquer003003
60%60%66--1515--0303Jane Jane SmithSmithInvestigate reusable Investigate reusable dunnagedunnage002002
5%5%88--1616--0303Bill SmithBill SmithImplement pull system for tempered Implement pull system for tempered partsparts001001
ResultsResultsTarget DateTarget DatePerson Person ResponsibleResponsible
AI DescriptionAI DescriptionAction Action ##
SP – 11/9/2004 NIST MEP
M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P
Questions?Questions?
Contact: Bill StoughSustainable Research [email protected]